Per J.H. Joglekar :

The respondents in this appeal filed a classification list indicating inter alia the manufacture of other articles of wood of different shapes and sizes (wooden segments). The classification suggested for this item was under 4410.90 as 'other articles of wood not elsewhere specified'. Vide show cause notice dated 7.12.88 the classification suggested by the Astt. Collector was under 9503.00 as parts of toys. After hearing the assessees, the Astt. Collector confirmed the classification under sub heading 9503.00 and also confirmed differential duty. The Collector (Appeals) in his order held that the wooden segments made by the assessees were not identifiable as part of any particular toy, in that form, and as such they could not be considered as parts and accessories of toys. He further held that they were not suitable for use solely or particularly with articles of sub-heading 9503. Accepting the classification suggested by the assessees, he reversed the order of the Astt. Collector resulting in the present appeal being filed by the Revenue.

2. Shri R.S. Sangia, ld. JDR in his arguments relied upon the notes attached by the assessee themselves alongwith the classification list and claimed that these were not profile shapes of goods made at random but that they were made particularly as per the dimensions and shapes required by the buyers for fitting into toys. A more specific definition being available, the Collector was wrong in going for the general nomenclature.

3. Shri Rajesh Jain, ld. Advocate appearing for the respondents relied upon the Supreme Court decision in the case of Modi Rubber Ltd. reported at 1997 (22) RLT 107 (S.C.) = 1997 (94) ELT 439 in which the Supreme Court held that components would be those with special shape and quality which would not be essential for other use in any other purpose.

4. We have carefully considered the rival submissions and have also seen the cited judgements.

5. In their judgement in the case of UOI Vs. Garware Industries reported at 1996 (87) ELT 12, the Supreme Court observed that the burden of proof was on the taxing authorities to show that the particular item was taxable in the manner claimed by them. We find that the following notes were appended to the classification list by the assessees themselves:-

NOTES ON WOOD PROFILES

Wood profiles are made on straight line moulding machine by feeding the strips of wood of particular size and obtaining various shapes of wood profile. The profiles of wood are cut by knives ground to exact profile needed. These knives are on high speed rotating heads of the machine, depending on the complicity of profile. Number of profile outer can be 1 to 4.

The wood used in just sawn strips seasoned to moisture content of 10 to 14% and species of wood will be as per customer's order. No special wood is used for the purpose and in process of manufacture of wood profile. Strips of wood does not go through any structural or other change except its physical appearance.

Wood is not subjected to any chemical or physical treatment and it does not acquire any increased density or hardness or improved mechanical strength or resistance to chemical or electrical agencies."

NOTES ON WOOD SEGMENTS

"Short notes on certain wooden articles of different shapes and sizes called wooden segments produced or manufactured as declared in the classification list filed effective from the manufacturers wish the produce the following wooden articles, viz:

Wooden shapes and sizes like U, L, semi circle, bow shape etc. as per the customer's specification.

Process of manufacture: Veneers of wood are arranged one over the other with grains parallel to one another and bonded with Phenol Formaldehyde Resin in a wooden mould of the particular shape of the article to be manufactured. The wooden block that comes out of the mould is cut to the moulded shape of width less than 5 cm. These articles are used in the manufacture of toys but they are not toys."

6. The process of manufac